Robinhood reports August 2025 customer and trading metrics
Investing.com - Morgan Stanley upgraded Sanofi (NASDAQ:SNY) from Equalweight to Overweight on Monday, while raising its price target to $58.00 from $56.00. Currently trading at $46.50, InvestingPro analysis suggests the stock is undervalued, with a robust financial health score of 2.94 (GOOD).
The upgrade reflects Morgan Stanley’s confidence that Sanofi’s investment case will return to both organic growth and margin improvement, with sales performance critical to maintaining margin momentum. The company has demonstrated strong execution with a 15.65% revenue growth and an impressive 71.32% gross profit margin in the last twelve months.
Morgan Stanley believes Sanofi’s 2025 earnings growth appears well-supported, with potential upside to company guidance and consensus estimates backed by the share buyback program and Amvuttra royalty stream, potentially leading to a guidance upgrade in the third quarter of 2025.
For 2026, Morgan Stanley projects continued sales momentum of 8% year-over-year, divestment income of approximately €500 million, and strong rollout of Alnylam’s Amvuttra generating about €830 million in royalty income, suggesting modest margin expansion is possible to 29.6% from an estimated 29.1% in 2025.
Despite an anticipated 30 basis point margin contraction in 2027 due to the loss of approximately €800 million in refunding income, Morgan Stanley considers market concerns about margins to be excessive, noting that Amvuttra sales should provide a stronger-than-expected operating profit boost, albeit potentially short-lived. The stock currently offers a 3.44% dividend yield, and detailed analysis available in the InvestingPro Research Report provides comprehensive insights into Sanofi’s financial outlook and growth potential.
In other recent news, Sanofi’s earnings and revenue results remain a focal point for investors, as analysts continue to adjust their projections. BofA Securities recently lowered its price target on Sanofi to EUR8.40 from EUR8.48, maintaining a Buy rating, following mixed results from Phase III trials of itepekimab in treating chronic obstructive pulmonary disease (COPD). The firm emphasized the importance of upcoming Phase III results for amlitelimab in atopic dermatitis, expected in the third quarter. Meanwhile, Jefferies reiterated its Buy rating on Sanofi, highlighting the safety profile of the company’s OX40L-targeting treatment, which may offer advantages over competitors.
In related developments, Jefferies adjusted its price target for Kymera Therapeutics to $64.00 from $66.00, maintaining a Buy rating. This change follows Sanofi’s decision not to advance the Phase 2 IRAK4 degrader KT-474 in certain conditions, opting instead to prioritize the next-generation degrader KT-485, with trials anticipated in 2026. These strategic shifts and analyst ratings provide insight into the evolving landscape for Sanofi and its partners.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.